U.S. Property Taxes by State — 2026 Report
Last updated: March 2026
Author: Eliza Theiss
One of the oldest forms of taxation, property taxes are one of the primary forms of revenue streams for local governments. They’re used to fund public services and programs, such as schools; emergency services (including fire and police departments); infrastructure development and upkeep; parks and recreation; sanitation (including pest control, like mosquito abatement); public works; government employee payrolls; and more.
While property tax rates can vary significantly by state, all states apply them to all properties, as well as land. Additionally, property taxes can also vary within different areas of a state, as well, because local governments may charge differing rates or additional taxes to fund specific programs and services — such as an added county-level tax for capital infrastructure developments or even within certain parts of a larger city to garner additional funds for a specific school district.
Consequently, that difference in property tax rates between states can lead to significant differences between homeowners’ tax bills. For example, Alabama’s average effective tax rate stands at 0.38%, while Illinois’ average property tax rate is 2.01%. That means that the owners of a $1 million home taxed at full market value will have a $20,100 property tax bill in Illinois but would only have to pay $3,800 in Alabama. Therefore, it’s essential to be familiar with local tax policies when considering a new location.
Determining Property Taxes
Levied annually, property taxes are calculated by multiplying the assessed value of the property by the effective tax rate applicable in the property’s region — also referred to as an ad valorem tax — as well as taking into account any exemptions or deductions that the owner or property may qualify for.
Assessed Value
The assessed value of a property is determined by a government assessor designated by the tax jurisdiction under whose purview the property falls. Generally, the assessed value is determined every one to five years, although some states will only perform assessments in the case of specific events concerning the property, such as a change in ownership. And, while some jurisdictions assess at 100% market value, the assessed value is typically a certain fraction of the property’s market value.
The assessed value is determined by a variety of factors, such as recent comparable property sales in the area; the cost to replace the property; potential income the property would produce if rented (taking into account operation costs); and any improvements or damages.
The percentage of market value that is assessed for a property’s taxation or tax liability is known as the assessment ratio. This can range from 100% –– meaning that the tax jurisdiction assesses a property’s full market value for taxation — to as low as 10%. So, a $1 million home located in a tax jurisdiction with a 20% assessment ratio will have an assessed value of $200,000, which is the amount that it will be taxed for.
Effective Tax Rate
The effective tax rate — also referred to as millage or mill rate — is determined by adding all of the mill levies or millage rates for each tax jurisdiction that the property is located in. For example, a home can fall under the tax jurisdiction of a city, county and school tax district. As a result, that property’s mill levy will be the sum of all three tax jurisdictions’ millage.
Mill rates are expressed in mills and represent the taxed amount per $1,000. meaning one mill equals one-thousandth of a dollar ($0.001 or 0.1 cents) or a millage rate of 0.001. If a school district has a mill of 30, then that school district’s millage rate will be 0.03, representing $30 of tax for every $1,000 of assessed value and resulting in a tax rate of 3%.
Millage rates or mills are determined by local governments’ budgetary needs divided by the value of all properties located in their jurisdiction. So, assuming the assessed property value in a specific area is $100 million and the budgetary needs are $10 million for the city, $4 million for the county, and $5 million for the school district, the city’s mill rate will be 0.1 ($10 million/$100 million), the county’s rate will be 0.04 and the school district’s 0.05, resulting in a total mill rate of 0.19 or 190 mills for a 19% tax rate.
Property Tax Exemptions
While all states apply taxes to all properties, some individuals and organizations can benefit from partial or full property tax exemptions. Properties owned by the government and religious organizations are fully exempt across the U.S., and most states offer some form of property tax exemption to disabled veterans. Some states — such as Iowa — offer exemptions to all veterans.
Other individuals and properties that may benefit from full or partial exemptions include charitable organizations, wildlife habitats and nature conservation areas, urban and historic revitalization developments, low-income households, and individuals with disabilities, among others. Furthermore, full or partial exemptions are also often provided as incentives to businesses, organizations and individuals to boost local and state economies and/or revitalize specific areas.
Essentially, states and local governments have the power to designate tax exemption for individuals and organizations. And, similar to the effective tax rate, property tax exemptions can and do differ significantly by state and potentially within different areas of a state, as well.
2026 U.S. Property Taxes by State
Property taxes can vary significantly from state to state, leading to a difference of potentially thousands of dollars in a homeowner’s bill for essentially identical properties.
Therefore, it’s crucial to thoroughly research property taxes at both the state level — to get a general idea of a state’s level of taxation — and a very specific local level for an area you may be considering relocating to.
Moreover, it must be kept in mind that tax levies are always set by local governments — such as the city, county or school district — and may include surtaxes for special assessment districts that may be as small as a neighborhood or subdivision.
To provide a clear snapshot of a state's overall tax burden, we determined each state's average effective tax rate by dividing the median real estate taxes paid by the median home value, based on data from the U.S. Census Bureau. In simple terms, this shows what percentage of a state's median home value goes toward property taxes.
Explore the table below to discover 2026 property taxes ranked by state.
Map of Property Tax Rates by State
Explore the interactive map below for a quick look at average effective property tax rates across all states, plus Washington, D.C., and Puerto Rico. Hover over or zoom in on a state to see more details at a glance.
Note: The average effective tax rates displayed on the map above are expressed as a percentage of home value. They were calculated by PropertyShark for each individual state by dividing the median real estate taxes paid by the median home value.
Highest Property Taxes — Top 10 States
New Jersey has the highest effective tax rate: 2.11%.
Considering the varying tax rates across the U.S., homeowners relocating from a state with low property taxes to one that charges high levies may be confronted with an unexpected financial cost. However, it’s important to keep in mind that high property taxes do not automatically mean that other taxes — such as sales, income and fuel taxes — will also be high.
For an easier overview of the differences in tax rates among the states with the highest property taxes, see our chart below:
Explore below the top 10 states with the highest property taxes in the U.S., according to the average effective tax rate. Also included are the median state home value, the median real estate taxes paid and the median household income.
1. New Jersey
- Effective tax rate: 2.11%
- State median home value: $454,400
- Median real estate taxes paid: $9,590
- Median household income: $103,556
New Jersey homeowners contend with the highest average effective property tax rate in the U.S. Paired with the ninth-highest state median home value, New Jersey homeowners have the absolute highest median real estate tax bill in the country at more than $9,500. Plus, New Jersey also charges one of the highest sales taxes at 7%, while its graduated income tax ranges from as low as 1.4% to as high as 10.75%.
2. Illinois
- Effective tax rate: 2.01%
- State median home value:$263,300
- Median real estate taxes paid: $5,298
- Median household income: $83,390
Although Illinois has the second-highest property tax rate in the U.S., homeowners face noticeably lower tax bills here than in New Jersey, thanks to the state’s significantly lower median home value. However, Illinois homeowners still pay the sixth-highest median property tax bill in the country. Its 6.25% sales tax is also on the heftier side and is joined by a 4.95% state income tax.
3. Connecticut
- Effective tax rate: 1.81%
- State median home value: $366,900
- Median real estate taxes paid: $6,643
- Median household income: $95,781
Connecticut’s property taxes are among the absolute highest in the U.S. As a result, Connecticut homeowners pay the third-highest property tax rate in the U.S. And, since Connecticut’s median home value trends higher than that of New Hampshire, Connecticut’s tax dues surpass New Hampshire’s property tax bills in sheer dollar amount. It’s also worth mentioning that while New Hampshire charges no sales tax, Connecticut’s state sales and use tax is 6.35%, one of the highest nationwide.
4. New Hampshire
- Effective tax rate: 1.66%
- State median home value: $402,500
- Median real estate taxes paid: $6,667
- Median household income: $99,031
5. Vermont
- Effective tax rate: 1.59%
- State median home value: $316,600
- Median real estate taxes paid: $5,039
- Median household income: $81,203
6. New York
- Effective tax rate: 1.55%
- State median home value: $423,800
- Median real estate taxes paid: $6,582
- Median household income: $85,974
7. Texas
- Effective tax rate: 1.49%
- State median home value: $283,800
- Median real estate taxes paid: $4,232
- Median household income: $78,476
7. Nebraska
- Effective tax rate: 1.49%
- State median home value: $238,600
- Median real estate taxes paid: $3,549
- Median household income: $76,475
8. Wisconsin
- Effective tax rate: 1.42%
- State median home value: $266,500
- Median real estate taxes paid: $3,792
- Median household income: $77,485
9. Iowa
- Effective tax rate: 1.39%
- State median home value: $208,000
- Median real estate taxes paid: $2,897
- Median household income: $75,059
10. Ohio
- Effective tax rate: 1.31%
- State median home value: $214,800
- Median real estate taxes paid: $2,822
- Median household income: $71,389
Lowest Property Taxes — Top 10 States
Hawaii has the lowest effective tax rate: 0.27%.
Some U.S. states (and territories) boast attractively low property tax rates paired with low taxation in other areas, as well. For instance, Louisiana currently has the ninth-lowest property tax rate in the U.S. at 0.55%. And at 4%, it also has one of the lowest sales taxes in the country as well, while state income taxes range between 2% and 6%.
For an easier overview between the differences in tax rates among the states with the lowest property taxes, explore our chart below:
Explore our list below to see the states with the 10 lowest property taxes by their average effective property tax rate. Also included are the median state home value, the median real estate taxes paid and the median household income.
1. Hawaii
- Effective tax rate: 0.27%
- State median home value: $839,100
- Median real estate taxes paid: $2,239
- Median household income: $100,389
Hawaii currently has the lowest average effective property tax rate in the U.S. at 0.27%. However, because it also features one of the highest median home values, homeowners’ tax bills can still easily surpass that of states with higher rates. Even so, at 4%, the state also has one of the lowest sales tax rates in the country — as states with a thriving tourist industry often do.
2. Alabama
- Effective tax rate: 0.38%
- State median home value: $209,900
- Median real estate taxes paid: $788
- Median household income: $63,999
With an effective property tax rate of 0.38% and the eigth-lowest median home value in the U.S., Alabama offers a homeowner-friendly tax environment overall. Plus, its 4% sales tax is also among the lowest in the U.S., while its income tax ranges between 2% and 5% — making this an attractive location for those looking to own a larger home on a lower budget.
3. Nevada
- Effective tax rate: 0.47%
- State median home value: $435,400
- Median real estate taxes paid: $2,027
- Median household income: $78,260
Although Nevada's property tax rate sits at 0.47%, higher home values than in other states with similarly low property tax rates mean that Nevada homeowners pay a property tax bill nearly three times higher than Alabama owner. And, while Nevada is one of nine states that do not charge income taxes, its 6.85% statewide sales tax ranks as the seventh highest in the U.S.
4. Arizona
- Effective tax rate: 0.48%
- State median home value: $394,500
- Median real estate taxes paid: $1,879
- Median household income: $79,964
4. Colorado
- Effective tax rate: 0.48%
- State median home value: $539,400
- Median real estate taxes paid: $2,602
- Median household income: $95,470
4. South Carolina
- Effective tax rate: 0.48%
- State median home value: $259,000
- Median real estate taxes paid: $1,251
- Median household income: $69,234
5. Idaho
- Effective tax rate: 0.49%
- State median home value: $418,600
- Median real estate taxes paid: $2,038
- Median household income: $77,800
5. Puerto Rico
- Effective tax rate: 0.49%
- State median home value: $131,500
- Median real estate taxes paid: $646
- Median household income: $26,297
6. Delaware
- Effective tax rate: 0.50%
- State median home value: $352,000
- Median real estate taxes paid: $1,768
- Median household income: $84,954
6. Tennessee
- Effective tax rate: 0.50%
- State median home value: $286,700
- Median real estate taxes paid: $1,442
- Median household income: $69,595
7. Utah
- Effective tax rate: 0.52%
- State median home value: $489,400
- Median real estate taxes paid: $2,525
- Median household income: $95,166
8. West Virginia
- Effective tax rate: 0.53%
- State median home value: $162,600
- Median real estate taxes paid: $865
- Median household income: $59,608
9. Arkansas
- Effective tax rate: 0.55%
- State median home value: $188,000
- Median real estate taxes paid: $1,040
- Median household income: $60,773
9. Louisiana
- Effective tax rate: 0.55%
- State median home value: $216,500
- Median real estate taxes paid: $1,180
- Median household income: $60,756
10. Wyoming
- Effective tax rate: 0.57%
- State median home value: $309,700
- Median real estate taxes paid: $1,767
- Median household income: $76,176
Year-over-Year Changes in U.S. Property Taxes by State
All 50 states (as well as Washington, D.C. and Puerto Rico) saw the median property tax bill rise year-over-year, despite effective tax rates trending down. This came as the result of median home values increasing throughout the country, leading to elevated bills. So, even though owners paid higher property taxes, the average effective tax rate now sits below 0.6% in 16 states, the same as the previous year. At the same time, six states had an average effective tax rate of at least 1.5%, three fewer than last year, also the result of growing home prices, rather than diminishing property tax rates.
Explore the table below to see how the current year compares to the previous when it comes to property tax rates, median home values and median property taxes paid in all 50 U.S. states plus Washington, D.C. and Puerto Rico:
Expert Opinions on Property Taxes
Relocating to a Lower Property Tax State
Christopher Berry:
"There are many other factors that are more important for the average person when considering a move — job, family, and local amenities, to name a few. Property taxes are a bigger consideration when choosing among localities within a region. Once you have decided to move to the Chicago region, for example, there are many different municipalities and school districts available. Property taxes will be a big consideration when choosing among them."
Bill Dare:
"Municipalities must get their money to pay for schools, roads, etc. from somewhere. Property taxes are considered the most stable source of revenue for governments as property prices, and therefore revenues, drift up over time. Sales and use tax revenues decline in bad economic conditions and so municipalities eschew those in favor of more stable revenues, which is why food is still taxed in most states, yet it is probably one of the most regressive on lower income folks.
But municipalities (…) they all must tax, they just go about it differently. It becomes very complicated quickly. There are homestead and other forms of exemptions that make direct comparisons between states very difficult. You need to look at the entire tax package. At a minimum, you should also consider income and sales tax. Also, does it tax on food or not? Services? Fees? All sorts of taxes need to be considered. Location, Location, Location.
For example, Hawaii has, by far, the lowest state property tax rate at 0.28%. It also has a low state sales tax (4%). So why isn’t everyone moving there? Hawaii has an 11% income tax (ouch). Let’s compare Florida, Texas, and California. Florida and Texas don’t have income tax and California has the highest income tax rate in the country. The data indicates folks are moving from California to Florida and Texas.
Yet, at 0.89% Florida is slightly below the national average property tax rate of 1.11% and Texas is seventh highest in property tax rates at 1.8%. Meanwhile, California is 16th lowest in property tax rates at 0.76%.
It appears they are fleeing California because of the highest income tax rate in the country. So, other factors are at play that outweigh property tax as a deciding factor. In other words, they must tax you somehow and you have to look at the whole “nest” of taxes to figure out if that state is the one you want to build your nest in.
However, within my state and most likely yours, it also depends on the county and city property taxes. I live near the county line, and I could move less than a mile away and save about a quarter percent in property taxes. That is $250 per $100,000 of property value. The difference is primarily school district taxes. Now that I no longer have kids at home, the school district plays a minor role in my decision of where to live. Is it worth my effort to move to save in annual taxes? In my case, yes. Your mileage will vary."
Property Tax Mistakes Homeowners Make
Christopher Berry:
"One of the biggest mistakes homeowners make is not taking advantage of all the exemptions and abatements that are available to them. For instance, many jurisdictions offer a homestead exemption (that is, for people whose home is their primary residence), as well as reductions for specific groups of taxpayers, like seniors, veterans, or those with disabilities. But often the taxpayer has to proactively claim these exemptions; they are not granted automatically. And sometimes you have to re-apply every year.
The other big mistake people make is not considering an appeal on their valuation. People should take the time to look over their assessment and see whether their home is being valued fairly. If not, every jurisdiction offers some process for an appeal. It is much easier to do than people might think. Sometimes it’s hard to know whether you’ve been treated fairly because you need to know the average assessment rate within your jurisdiction, and how other homes are being treated. Do not assume that the assessor knows better about the value of your home than you do.
The property tax is an ancient institution that hasn’t experienced dramatic changes recently. But one of the important changes is that owners are increasingly paying their property taxes as part of escrow included in their mortgage payments. This means that many people do not pay their property taxes directly and may not even look at their tax bill. This is a mistake. Even if you are paying by escrow, stop to look at that tax bill every time."
Bill Dare:
"They don’t realize that they will have to pay taxes annually when they own their home. It goes into the mortgage payments and so it is treated as part of the loan. They forget about them. Meanwhile, the big move up in real estate prices means everyone's’ tax bill has gone up. It will give everyone a jolt when their mortgage company raises their monthly payment to cover the new taxes owed."
Property Tax Mistakes First-time Buyers Make
Christopher Berry:
"One of the biggest mistakes that first-time buyers make is not anticipating future property tax increases and making sure their budget can accommodate this growth in their tax bills over time. People think a lot about their mortgages. Those who take out a fixed rate mortgage may expect that their housing bill will not change over time. But in fact, the biggest reason for increases will be property taxes: they usually go up and seldom come down. Over time, property taxes can become a larger part of your monthly bill than the mortgage payment itself.
First-time buyers should start by looking at the valuation of the home. When was the last reassessment and when will the next one happen? Reassessments are the time to expect larger increases. On top of reassessments, expect a regular increase in taxes over time."
Choosing Where to Buy: Home Value Vs. Property Taxes
Christopher Berry:
"One is not more important than the other, and buyers should think of these costs together. The total cost of housing is the cost for the mortgage plus the cost of taxes. This total price is what people should be thinking about. And, of course, we should think about taxes as the price we pay for government services. The goal should not be to minimize taxes but to find a fair price for the services being provided. This is why people will pay more taxes for homes in a good school district, for example."
Expert opinions were provided by:
Bill Dare
Bill Dare is an Associate Professor at the Department of Finance at Oklahoma State University, with a main focus on research and teaching finance, primarily analysis of finance theories with sports gambling data and real estate analysis of property taxes and the pricing of real properties.
Christopher Berry
Christopher R. Berry is the William J. and Alicia Townsend Friedman Professor at the University of Chicago Harris School of Public Policy and the College, as well as the academic director of the Center for Municipal Finance. Berry is the author of Imperfect Union: Representation and Taxation in Multilevel Governments, winner of the Best Book Award in Urban Politics from the American Political Science Association, Theory and Credibility, and is the author of extensive research on property tax fairness. His research has been featured in the New York Times, the Washington Post, Bloomberg BusinessWeek, the Chicago Tribune, Last Week Tonight with John Oliver, and more.
Methodology
Data concerning median real estate taxes paid, the state (including D.C. and the Commonwealth of Puerto Rico) median home value, the median household income was extracted from the U.S. Census Bureau’s 2020-2024 American Community Survey 5-Year Estimates.
The average effective tax rate (also referred to as effective tax rate on this page) was calculated by dividing the median real estate taxes paid by the median home value.
Median home value has been defined as the assessed median home value. However, it’s important to note that the assessment refers not to a tax assessor’s valuation, but to the assessment of American Community Survey respondents of what their property might sell for if it were on the market.
All figures are based on 2024 (referred to as "current") and 2023 (referred to as "previous") figures, the most recent data made available by the U.S. Census Bureau.
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About PropertyShark
PropertyShark is an online real estate database and property research tool that provides building details, ownership information, comparable sales, and foreclosure data. Founded in 2003, PropertyShark serves real estate professionals and consumers in New York and other major U.S. markets.
Senior Writer
Eliza Theiss is a senior writer reporting real estate trends in the U.S. Her work has been cited by CBS News, Curbed, The Los Angeles Times, and Forbes among others. With an academic background in journalism, Eliza has been covering real estate since 2012. Before joining PropertyShark, Eliza was an associate editor at Multi-Housing News and Commercial Property Executive. She has also contributed extensively to CommercialEdge. Reach her at [email protected]
Disclaimer
Information provided on this page is purely informational and is not, and should not be regarded as, investment advice.
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